Íslandsbanki accepted significant anti-money-laundering control failures and an ISK 570 million fine

Summary

In 2024, Íslandsbanki entered into a settlement with the Financial Supervisory Authority of the Central Bank of Iceland following an onsite inspection that began in autumn 2022. The bank accepted the authority's conclusion that its shortcomings were numerous and concerned several fundamental elements of its anti-money-laundering control framework. The identified issues concerned the bank's business-wide risk assessment, risk assessments for individual customers and transactions, customer due diligence, due diligence involving foreign financial institutions, enhanced due diligence, and ongoing monitoring of transactions and customers, including the recording and traceability of cash transactions. The authority described the breaches as significant and stated that some repeated observations previously made in 2021. Íslandsbanki agreed to undertake remedial measures and pay an administrative fine of ISK 570 million to the Icelandic Treasury. The settlement concerned failures in the bank's AML control systems. It did not establish that money laundering had occurred through the bank. Sources: Central Bank of Iceland — settlement concerning breaches of anti-money-laundering legislation: https://sedlabanki.is/frettir-og-utgefid-efni/grein/2024-06-04-Samkomulag-Sedlabanka-Islands-vid-Islandsbanka-hf--um-ad-ljuka-med-satt-mali-vegna-brota-Islandsbanka-gegn-logum-um-adgerdir-gegn-peningathvaetti-og-fjarmognun-hrydjuverka Íslandsbanki announcement through Nasdaq: https://view.news.eu.nasdaq.com/view?id=b8af7c7eb25f6032434cb813cab596953&lang=en